In addition, council has recorded an operating surplus of $5.22 million before capital.

Total revenue equalled $62.4 million for the 2012-2013 financial year, while total expenses equalled $45.6 million.

A total of 18 full-time employee positions were removed from council's organisation structure, bringing staff costs down to $19.5 million.

Council director of business, cultural and financial services Max Turner said overall, council had recorded a very strong financial result for the year.

"We've maintained good controls on expenditure and generated appropriate levels of revenue to maintain assets and provide the current service levels to the community as outlined in the Community Strategic Plan," Mr Turner said.

However, Mr Bradley said there was still work to be done particularly in regards to reserves.

"Those need to be built up considerably," Mr Bradley said.

"It's better, sure, but a lot more work needs to be done and I hope in the coming years these reserves will be built up considerably."

Griffith City Council has managed to reduce staff costs by $2 million.